Banks Sharply Raise Oil-Price Forecast on Geopolitical Risks

Banks raised their forecasts for oil prices for the eighth month in a row in May, amid escalating geopolitical risks to supply in Iran and Venezuela. Those concerns have already pushed the price of Brent crude, the global oil benchmark, above $80 a barrel last month for the first time since November 2014. Brent is now expected to average over $70 a barrel this year, according to a poll of 12 investment banks surveyed by The Wall Street Journal. West Texas Intermediate, the U.S. standard, should average nearly $66 a barrel, the poll showed. Both estimates are a roughly $6 increase on the forecast from April’s survey. The significantly revised estimates come as crude prices have risen to more than 3 ½-year highs in May. On Friday, Brent was trading down 0.53% at $77.20 a barrel, while WTI was down 1.10%, at $66.30 a barrel. “The key driver here […]